Seems to me that there is risk on both sides. The cost of a trial alone, of this sort is, and can be, very substantial. Playboy and Cirtran are wise to discuss a settlement. The question is whether that number will be enough to avoid the trial. My guess is no because of how high the legal costs have accrued to date.
I do not believe the non payment of the royalties will be an issue. The major focus will, and should be, on the damages done in violation of the contract by Playboy, causing Cirtran to go into non payment. That is where the case will be decided. My guess is that since it has dragged on so long and gone through so many judges, that there is sufficient evidence to prove that damages were down.
All that being said, Playboy is obviously in financial distress of some sort. Hugh obviously wants to relax in his last years and my guess is that if he still has tens, if not hundreds of millions left, he would be willing to settle for a number less than the sale of Playboy's assets. Thereby protecting whatever fortune he has left, and adding an amount from the difference of the sale and the settlement.
Just my speculation...
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